Mondelēz International, the global confectionery behemoth behind well-known brands like Toblerone, Oreo, and Chips Ahoy, was recently fined €337.5 million by the European Union for engaging in 22 anti-competitive practices that breached the bloc’s antitrust rules. The European Commission’s investigation revealed that Mondelēz took advantage of its dominant position in its industry, by deliberately restricting cross-border trade within the EU and preventing wholesalers, shoppers, and traders from buying certain Mondelēz products in other EU member states where they were cheaper. It also worked behind the scenes to prevent the sale of certain products in other member states, where retailers could get a higher price for the goods. As a result of these practices, consumers paid higher prices, and market competition overall was hindered.

In one of the examples cited by the Commission, chocolate bars of a certain brand were taken off the shelves in the Netherlands so that retailers could not resell them in Belgium, where they were priced higher. Mondelēz’s actions undermined the principles of the EU’s single market, which is designed to allow the free movement of goods across member states. By limiting availability of its products to specific countries and stopping lower-priced goods from crossing borders, the company effectively reduced competition and restricted consumer choice, with direct impacts on both consumers and retailers. The Commission’s decision to impose a hefty fine reinforces the EU’s commitment to maintaining fair competition and deterring other corporations and companies from engaging in similarly anti-competitive behavior.

This enforcement action also is part of the EU’s broader effort to crack down on unfair business practices that harm consumers and stifle competition. By holding companies accountable for their actions, the EU aims to send out a strong message about the importance of a level playing field. Beyond the messaging though, it ultimately aims to protect and benefit consumers by ensuring their access to fair prices, greater choice, and more innovation. We should also note though that the Commission clearly acknowledged that the unfair practices ceased in 2020, and the fine was lowered by 15 percent, in recognition of Mondelēz’s cooperation with the investigation.

Discussion Questions

1. How do anti-competitive practices like those employed by Mondelēz affect consumer choice within the EU?
2. What impact do fines like the one imposed on Mondelēz have on corporate behavior? Can they achieve the intended outcomes?

Sources: Lisa O’Carroll, “Toblerone Maker Mondelēz Fined €337.5m for Anti-Competitive Practices,” The Guardian, May 23, 2024; Vinay Patel, “Oreo, Chips Ahoy, Toblerone Maker Fined £288M by EU for Shrewd, Anticompetitive Practices,” International Business Times, May 24, 2024; Gerardo Fortuna, “US Food Giant Mondelēz Fined €337.5m for Breaching Bloc’s Antitrust Rules,” Euro News, May 23, 2024.